HR practices during post-merger conflict and merger performance

Abstract

An extensive body of literature has investigated financial and strategic variables as predictors of mergers and acquisitions (M&A) performance without finding clear relationships. The literature does not investigate remedies for conflicts in M&A. This paper aims to develop a knowledge-based theory of M&A integration, drawing upon research on HR practices in M&A, the resource-based view of the firm, and international management. The study also explores the critical differences between acquirers from various countries in the way in which human resources are managed during cross-cultural conflict situations, and tests the relationships between HR practices and post-merger performance in multiple countries. The findings show that there is no clear best practice to address the conflict situation and enhance M&A performance.